Date:20/09/2006 URL: http://www.thehindu.com/2006/09/20/stories/2006092022820400.htm

Karnataka - Bangalore

Spot exchange to be set up

Special Correspondent

It will enable producers to get the best price for their commodities

Bangalore: Producers will now be able to get the best possible price for their commodities with the setting up of the first spot exchange in the country with headquarters in Bangalore for electronic trading in horticulture (fruits and vegetables), floriculture, dairy and allied products.

Mother Dairy Foods Processing Ltd., a group company of NDDB (National Dairy Development Board) and the owner of brands such as Mother Dairy, Safal and Dhara, has signed a joint venture agreement with Financial Technologies India Ltd., the promoters of MCX (Multi Commodity Exchange of India Ltd.) to establish the SAFAL National Exchange of India Ltd. (SNX) headquartered at Safal market in Bangalore.

SNX would be a subsidiary of Mother Dairy Foods Processing Ltd. with 51 per cent shareholding while Financial Technologies and MCX would jointly hold a 49 per cent share in the joint venture company.

This joint national initiative will provide a nation-wide platform for trading in horticulture, floriculture, dairy and allied products.

SAFAL, NDDB's Fruit and Vegetable Project, will provide its expertise in post-harvest handling of perishable commodities, organising farmer associations while Financial Technologies and MCX will provide the core technology along with the domain expertise and know-how to set up the spot exchange, according to a company official. SNX aims at providing the required infrastructure for electronic trading in horticulture, floriculture, dairy and allied products by bringing in greater transparency, accessibility, and price discovery.

The exchange-based spot trading will allow producers to get the best possible price for their commodity at a given point of time as buyers from all over the country will be able to buy commodities through SNX.